Internet Ad Revenues at $10.9 Billion for First Half of `09
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Show Slight Fall Off Year-on-Year in Tough Economy
NEW YORK--(Business Wire)--
Today the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP
(PwC) released the IAB Internet Advertising Revenue Report for the first half of
2009. U.S. Internet advertising revenues were at $10.9 billion in that period, a
5.3% decline from the same period in 2008.
Search and display-related advertising continue to represent the largest
percentages of overall interactive advertising spend. Search revenues amounted
to more than $5.1 billion for the first six months of 2009, up slightly from
that same period in 2008. Display-related advertising-which includes display
ads, rich media, digital video and sponsorship-totaled nearly $3.8 billion in
the first six months of 2009, showing a relatively modest 1.1% decline from the
same period in 2008. Digital video continues to experience robust growth with a
38% increase from the first half of 2008.
"We are in one of the most difficult economic slumps in decades. Interactive is
one of the advertising sectors that has been least affected," said Randall
Rothenberg, President and CEO of the IAB. "In recent years the digital
revolution has driven a transformation of how consumers experience advertising
and media. As the economy improves, we`re confident that brands will devote an
even greater share of their budgets to reaching consumers as they make
interactive media a larger part of their lives."
"While the overall advertising market has continued to be impacted by current
economic conditions, marketers are allocating more of their dollars to digital
media for its accountability and because consumers are spending more of their
leisure time online," said David Silverman, PwC Assurance partner.
The following data highlights key first six-month revenue data breakouts; dollar
figures are rounded.
($ millions if not indicated):
Advertising Formats: Search and Display-related ads continue to be leading
formats.
FH 2009 FH 2008
Search 47% ($5,148) 44% ($5,064)
Display Related: 34% ($3,759) 33%($3,799)
-Banner Ads 22%($2,394) 21%($2,418)
-Rich Media 7% ($704) 7%($806)
-Digital Video 4%($477) 3%($345))
-Sponsorship 2% ($184) 2% ($230)
Classifieds 10% ($1,116) 14% ($1,611)
Referrals/Lead Generation 7% ($728) 7% ($806)
E-mail 1% ($149) 2% ($230)
Industry Concentration: Percentages of revenues by the top 10, top 25 and top 50
have remained consistent.
FH 2009 FH 2008
Top 10 71% 70%
Top 25 82% 81%
Top 50 89% 90%
Pricing Models: Performance deals continue to be the leading pricing models,
followed closely by CPM deals.
FH 2009 FH 2008*
Performance Deals 58%($6,363) 54%($6,260)
CPM 38% ($4,059) 42% ($4,750)
Hybrid 4% ($478) 4% ($500)
*NOTE: FH, 2008 Pricing Models numbers have been restated based on additional
data received after the IAB Internet Advertising Revenue Report covering the
first six months and the second quarter of 2008 was published on October 7,
2008.
The IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted
independently by the New Media Group of PricewaterhouseCoopers. The results are
considered the most accurate measurement of interactive advertising revenues
because the data is compiled directly from information supplied by companies
selling advertising on the Internet. The survey includes data concerning online
advertising revenues from Web sites, commercial online services, free e-mail
providers, and all other companies selling online advertising. The full report
is issued twice yearly for full and half-year data, and top-line quarterly
estimates are issued for the first and third quarters. PwC does not audit the
information and provides no opinion or other form of assurance with respect to
the information.
A copy of the full report is available at: http://www.iab.net/AdRevenueReport
About PricewaterhouseCoopers:
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax
and advisory services to build public trust and enhance value for its clients
and their stakeholders. More than 140,000 people in 149 countries across our
network share their thinking, experience and solutions to develop fresh
perspectives and practical advice.
"PricewaterhouseCoopers" refers to the network of member firms of
PricewaterhouseCoopers International Limited, each of which is a separate and
independent legal entity.
About the IAB:
The Interactive Advertising Bureau (IAB) is comprised of more than 375 leading
media and technology companies who are responsible for selling 86% of online
advertising in the United States. On behalf of its members, the IAB is dedicated
to the growth of the interactive advertising marketplace, of interactive`s share
of total marketing spend, and of its members` share of total marketing spend.
The IAB educates marketers, agencies, media companies and the wider business
community about the value of interactive advertising. Working with its member
companies, the IAB evaluates and recommends standards and practices and fields
critical research on interactive advertising. Founded in 1996, the IAB is
headquartered in New York City with a Public Policy office in Washington, D.C.
For more information, please visit www.iab.net.
IAB
Media:
Marla Aaron, 212-380-4714
marla@iab.net
or
PricewaterhouseCoopers
Media:
Steven Silber, 646-471-4059
steven.g.silber@us.pwc.com
Copyright Business Wire 2009
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